Big Boost for UPS Employees: Now Eligible for Full Retirement and Death Gratuity Benefits Like OPS

In a major relief for central government employees under the Unified Pension Scheme (UPS), the Centre has officially approved gratuity benefits akin to those offered under the Old Pension Scheme (OPS). This move comes after continuous demands from government staff seeking parity with OPS beneficiaries in terms of retirement and death-related financial support.

🎯 Government Heeds Long-Standing Employee Demands

Union Minister Dr. Jitendra Singh, in a recent press briefing, announced that all central government employees covered under the Unified Pension Scheme will now be entitled to gratuity benefits at retirement or in case of death, just like those under OPS.

He emphasized that the government understands the concerns of employees under the National Pension System (NPS) and UPS, who have long felt that their post-retirement financial security is not at par with the benefits enjoyed under the older pension system.

📜 What the New Gratuity Rule Says

According to the new directive issued by the Department of Personnel and Training (DoPT):

• Employees enrolled under UPS will now be eligible for gratuity benefits under the Central Civil Services (Gratuity) Rules, 2021.

• This includes cases of retirement, death during service, medical incapacitation, or permanent disability.

• The gratuity payout can be as high as ₹25 lakh, similar to the OPS, which was previously not applicable to UPS employees.

This decision significantly enhances the social security framework for central employees under UPS.

⚖️ Option to Switch to OPS in Case of Death

In a progressive inclusion, the government has also provided an option for families of deceased UPS employees to opt for benefits under the Old Pension Scheme (OPS). This ensures that in case an employee dies while in service, their family is not deprived of pension support and related entitlements.

V. Srinivas, Secretary of the DoPT, stated that this reform is in response to the increasing number of employee representations seeking clarity and equality in retirement benefits.

🔁 UPS vs NPS: Changing Perceptions

Until now, employees under NPS and UPS were uncertain whether these new models offered the same security as OPS. With this announcement, UPS is being positioned as a competitive and trustworthy pension option, now offering the same retirement and gratuity assurances as OPS.

The move is expected to positively influence newly recruited candidates and encourage more to opt for UPS as a viable alternative to NPS.

💬 Employee Reactions

Manjeet Singh Patel, President of the All India NPS Employees Federation, welcomed the move, calling it a “landmark decision” that will secure the future of lakhs of employees. He added that it will help UPS evolve into a trustworthy and employee-friendly pension model.

📅 From When Does This Apply?

As per a January 2025 notification by the Ministry of Finance:

• The option to choose between NPS and UPS has been made available to all new civil service recruits from April 1, 2025.

• This allows future employees the freedom to select a pension scheme that best suits their needs and expectations.

✅ Why This Move Matters

The decision to provide OPS-like gratuity benefits under UPS is not just a policy reform—it reflects a broader vision of ensuring economic and social security for every government employee.

It signifies the Centre’s commitment toward welfare-oriented governance and marks an important step toward reducing the disparities between different pension systems.

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